Electric car road tax UK 2025/26: what you now pay

For years, one of the quiet perks of going electric was a road tax bill of exactly £0. That has now changed. Since 1 April 2025, electric vehicles are no longer exempt from Vehicle Excise Duty (VED). If you own an EV, or are thinking about buying one, here is exactly what you now pay and why.

What actually changed, and when

Until 31 March 2025, zero-emission vehicles were completely exempt from VED. The Government announced in the 2022 Autumn Statement that this would end, to keep the tax system fair as more drivers switch to electric. That change took effect on 1 April 2025. From that date, electric cars are taxed in broadly the same way as petrol and diesel cars, with a few EV-specific details.

What electric cars pay now

What you pay depends mostly on when the car was first registered:

• Registered on or after 1 April 2025 (brand-new EVs): a first-year rate of just £10, then the standard annual rate of £195 from the second year onwards.
• Registered 1 April 2017 to 31 March 2025: the standard annual rate of £195 per year.
• Registered 1 March 2001 to 31 March 2017: a reduced rate of £20 per year.

So for the vast majority of electric cars already on UK roads, the practical change is going from £0 to £195 a year.

Figures are for the 2025/26 tax year. An EV with a list price over £50,000 also pays the expensive car supplement (see below).

The “expensive car supplement” (the one people miss)

This is the part that catches a lot of EV owners by surprise. If an electric car had a list price (the price when new, before discounts) above a certain threshold, it pays an extra supplement on top of the standard rate for five years, starting from the second year of registration.

• The supplement is around £425–£440 per year, on top of the standard £195.
• That means a qualifying EV can pay roughly £620–£640 a year during that five-year window.
• The threshold for zero-emission cars was raised to £50,000 (from the £40,000 that applies to petrol and diesel), which spares a lot of mid-range EVs.

If you are buying a premium electric car, it is well worth checking its original list price against that £50,000 line before you commit, because the supplement can add up to well over £2,000 across the five years.

Two quick examples

To make it concrete, here is what two typical owners now pay:

• A 2021 Nissan Leaf (list price under £50,000): was £0, now £195 a year. No supplement.
• A new 2025 premium EV with a £60,000 list price: £10 in year one, then £195 + around £425–£440 supplement = roughly £620–£640 a year for years two to six, dropping back to £195 afterwards.

What about hybrids?

The small £10 annual discount that used to apply to “alternative fuel” vehicles, including hybrids and plug-in hybrids, was also removed in April 2025. Hybrids now pay the same standard rate as an equivalent petrol or diesel. Plug-in hybrids are treated as normal cars for VED, based on their registration date and CO₂ figure.

Looking ahead: pay-per-mile from 2028

The Government has announced plans for a separate mileage-based charge for electric and plug-in hybrid cars, sometimes called eVED, expected to start in April 2028. The current proposals suggest something in the region of 3p per mile for pure EVs and around 1.5p per mile for plug-in hybrids, on top of standard VED. This is still a proposal rather than settled law, so the exact figures may change, but it is worth keeping on your radar if you are planning several years ahead.

Does this change whether an EV is worth it?

For most drivers, no. Even at £195 a year, an electric car is usually far cheaper to run day to day than a petrol or diesel equivalent, thanks to lower “fuel” costs (home charging is dramatically cheaper than the pump) and lower maintenance. The end of the exemption trims one of the perks, but it does not undo the core running-cost advantage. What it does mean is that you should factor £195 (or more, for expensive models) into your annual budget rather than assuming zero.

How this affects your car's value

Road tax is one of several running costs buyers weigh up, so tax changes can nudge used values, especially at the premium end where the expensive car supplement bites. It is one more reason to keep an eye on what your car is actually worth in today's market rather than relying on old assumptions.

When you value an electric car with moValue, our running-costs breakdown now reflects these new VED rules, so the annual figure you see is realistic rather than the old £0.

Frequently asked questions

Do electric cars pay road tax in the UK now?

Yes. Since 1 April 2025 the exemption for zero-emission vehicles has ended, so electric cars pay Vehicle Excise Duty like other cars. Most pay the £195 standard annual rate.

How much is road tax on an electric car?

For most EVs it is £195 a year. Brand-new EVs registered from April 2025 pay £10 in the first year, then £195. Older EVs registered before April 2017 pay £20. EVs with a list price over £50,000 pay an extra supplement on top.

What is the expensive car supplement for EVs?

It is an additional charge of around £425–£440 a year, on top of the standard rate, for electric cars with a list price above £50,000. It applies for five years, starting from the second year of registration.

Will electric cars be charged per mile?

The Government has proposed a mileage-based charge (eVED) from April 2028, with early figures around 3p per mile for pure EVs. This is still a proposal and the details may change.

This guide is general information, not tax advice. For the definitive, up-to-date figures always check the official guidance at gov.uk. Rates quoted are for the 2025/26 tax year and may change in future Budgets.